Henan Dayou Energy Says It’s Being Investigated Over DisclosuresBenjamin Haas
Henan Dayou Energy Co., a Chinese state-controlled coal producer, said it’s being investigated by the country’s securities regulator for possible disclosure irregularities. The stock slumped.
The China Securities Regulatory Commission has opened an investigation because of “suspected illegal disclosure of information,” Henan Dayou said yesterday in a statement to the Shanghai Stock Exchange. It didn’t say which disclosures were being probed.
No one was available to answer questions on the case, according to a woman who refused to give her name at the regulator’s press office in Beijing. Henan Dayou didn’t respond immediately to an e-mail.
The probe comes after the company said in a July 29 statement that Wu Yulu, chairman of Yima Coal Industry Group Co., its controlling shareholder, was placed under “shuanggui”, without saying why. Shuanggui is a phrase that literally means to report at a specific time at a specific place, which is the Communist Party’s form of extra-judicial custody. Wu is also on the board of Henan Dayou, according to data compiled by Bloomberg.
Henan Dayou plunged 6.2 percent to 9.80 yuan at 11:29 a.m. in Shanghai trading.